The Congressional Budget Office in its annual outlook forecast debt as a percentage of GDP in 2048 to be 11 percentage points lower in this year’s extended baseline projections than it was in last year’s, owing to a decline in spending projections. That decline is because of smaller appropriations for relief and recovery efforts related to hurricanes and wildfires — which then gets projected over the long term — and because of a downward revision of average interest rates. Still, the CBO expects debt to get to “unprecedented” levels — 144% of GDP by 2049, up from 78% this year.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
Latest posts by Market Watch (see all)
- Fed’s Rosengren says economy doesn’t look like it needs interest-rate cut - July 19, 2019
- Market Extra: European investors are getting a ‘green light’ to buy U.S. debt as currency hedging costs decline - July 19, 2019
- The MarketWatch Q&A: NFL quarterback Nick Foles on investing in his dad’s restaurants, his partnership deals — and how much he hates buying clothes - July 19, 2019